Monday, 20 May 2019
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ECONOMYREAL ESTATE

Cleared land in suburbs lead investment trend in HCMC’s real estate market

Updated at Friday, 15 Feb 2019, 09:19
The Hanoitimes - Land in the city’s suburbs and surrounding provinces like Long An, Dong Nai, Ba Ria-Vung Tau, and Binh Duong are abundant and rather cheap, offering investors various options.
Cleared land in suburban areas would lead the market with high liquidity in the trend investing in real estate in Ho Chi Minh City (HCMC) and adjacent zones this year, local experts have predicted. 
 
Part of a property project in Long Thanh district, Dong Nai province. Photo: Donghunggroup
Part of a property project in Long Thanh district, Dong Nai province. Photo: Donghunggroup
Land lots in the city’s suburbs and surrounding provinces like Long An, Dong Nai, Ba Ria-Vung Tau, and Binh Duong are abundant and rather cheap compared to other parts of HCM City, offering investors various options, local media quoted the experts as saying. 

Room for higher prices in the surrounding provinces remains potential in the near future as these areas are developing with bustling provincial capitals which are home to numerous industrial parks, newly-built residential areas, and famous beaches. 

The prospects are foreseeable for the following reasons. 

Firstly, well-invested infrastructure and transport connection between Ho Chi Minh City and neighboring provinces remain the biggest advantages. Thus both investors and those buy for living feel secure enough to get ownership of the land lots. 

Secondly, HCM City’s master planning on construction by 2030 with the building of new residential areas in line with upgraded urban transport, its plans on transferring 26,000 ha of arable land into industrial, commercial, and urban land in 2016-2020 would be factors guiding the sustainable development of the real estate market. 

Thirdly, the kick-off plans and the construction of a number of projects have put the prices on upward trend. 

The neighboring province of Binh Duong is on the radar of property investors as local authorities are pouring money into infrastructure and residential areas, driving up real estate prices, mostly areas along main arteries like National Road No.13, December 22 boulevard, Thu Khoa Huan highway, and Tan Van expressway.

In Long An, work on several big projects has lifted up real estate prices. The typical are inclusive of the 381-ha Waterpoint urban area in Ben Luc district invested by Nam Long Group, plan on the investment of an open economic zone on an area of 32,300 ha in Can Duoc and Can Giuoc districts by Him Lam Corporation. Other smaller projects include Bella Vista, T&T Long Hau, Saigon Village, Saigon River Park, and Cat Tuong Phu Sinh. 

Accordingly, the prices of cleared land and apartments in several projects, mainly in Can Giuoc district which borders with HCM City, rose 40%-60% from end-2017 

Fourthly, unexpected bubbles in in HCM City’s suburbs and areas surrounding Long Thanh International Airport project in Long An in 2018 have caught the investors’ attention to the market. 

Economist Bui Quang Tin said that the intensified investment in infrastructure in HCM City and better transport linkage have spurred the market’s momentum, mostly in cleared land segment. 

Echoing Tin, Le Hoang Chau, head of the Ho Chi Minh City Real Estate Association (HoREA), said that cleared land remains a favorite investment channel for the majority of people due to psychological factor for years. They feel safe with the ownership of a cleared land lot rather than an apartment which belongs to the investor, Chau explained. 
Linh Pham
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